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Subcontractors File 4.6 million in Mechanic's Liens against the $75 million Westin St. Louis 

By Charlene Prost, St. Louis Post-Dispatch
Knight Ridder/Tribune Business News 

Jul. 12--At least nine subcontractors who helped to build the finished part of a $75 million Westin Hotel at Cupples Station have filed separate mechanic's liens or notices against the property, saying they are owed a total of more than $4.6 million. 

All the companies were hired by the project's general contractor, James McHugh Construction Co. of Chicago, and they are seeking payment from McHugh, much of it for work done after original construction drawings were changed. 

Officials at several of the companies and their lawyers said they expect more subcontractors who also are owed money to follow suit. 

"I think every subcontractor on this job hasn't been paid for months," said Dudley McCarter, a lawyer representing four companies that did mainly masonry and concrete work. 

"This is a typical dispute where the owner and general contractor disagree on what payments are owed, and the parties that suffer are the subcontractors," McCarter said. 

The major part of the 257-room Westin, designed with a $2,000-a-night presidential suite and other luxury features, opened in March in three renovated, century-old Cupples Station warehouses, across the street from Busch Stadium. 

A fourth building on the block is being renovated with 33 hotel rooms, additional meeting rooms and a health spa. It's slated to open this year. 

The hotel's owner, which hired McHugh as general contractor, is a partnership that includes SunAmerica Inc. of Los Angeles as investor and McCormack Baron & Associates of St. Louis as developer and managing general partner. 

McCormack Baron, a housing-development specialist, also has proposed a $1 billion Chouteau Lake District development generally south of Cupples and has offered to serve as lead developer for Ballpark Village, a housing, office and entertainment complex proposed in conjunction with a new $346 million ballpark. 

Robert Soldan, a vice president at McHugh, said Wednesday that the subcontractors hadn't been paid because of McHugh's dispute with the hotel owner over what it is owed. 

"We are trying to get it resolved and would rather not have too much in the paper about it," he said. 

"But there were changes and modifications made. . . . We have some disputes with the owner over payments and changes, and we are trying to resolve this amicably," he said. 

Developer Richard Baron also acknowledged that McHugh and his firm have had differences about money. 

"The reality of it is that we have paid them everything they have requested under their base contract," he said. 

"But there were a series of change orders that are in dispute. We, in fact, took the extraordinary step to actually provide the contractor with an additional $2 million, over and above their base contract . . . with the understanding that we were giving it to them but reserved the right to contest those change orders. 

"So, fundamentally," he said, "we have given them more than they were entitled to under their base contract. Why they have not passed this out to their subs, I don't know." 

Baron also said the owners had fired McHugh as general contractor for the fourth building being renovated as part of the hotel and had hired R.G. Brinkmann Construction Co. as general contractor. 

"They are working on it now," Baron said, "and we still anticipate it will open this fall." 

Officials at Firstar Bank, the lender, referred questions to Baron. 

Sonia Fioenza, a spokeswoman at SunAmerica, said, "We have no idea if these claims are valid, and we are looking into it." 

Aschinger Electric Co. filed one of the largest liens, for $1.7 million. The company's lawyer, Craig Smith, summed things up this way: "What you have here is owners saying we don't want to pay for extra costs. You have the contractor saying you owe us more money . . . and the innocent subcontractors and materials men suffer." 

Jerry Schierding, owner of Grau Contracting Co., said his company is owed about $746,000, mainly because of "a huge amount of changes and things added to the hotel" after his company submitted its bid. 

Sid Trojahn, president at Trojahn Plumbing Co., said his company is owed more than $448,900, money he says his 50-employee company is eager to get. 

"This is money we need for cash flow," he said. 

Tim Bryant of the Post-Dispatch staff contributed information for this story. 

-----To see more of the St. Louis Post-Dispatch, or to subscribe to the newspaper, go to http://www.postnet.com. 

(c) 2001, St. Louis Post-Dispatch. Distributed by Knight Ridder/Tribune Business News. 


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